GT247.com Trading Blog

Wall Street Wednesday Technical Trade Note – 9 January 2019

Written by Barry Dumas | 09 Jan 2019

The start to the trading year is off with a bang as the Americans and Chinese re-enter trade negotiations which might see a positive outcome. The focus will be the FED meeting minutes later tonight at 21:00 SAST to see what was discussed and what the monetary outlook is going forward.

Market factors

  • Trade negotiations head for its third day from the scheduled two-day meeting as the market is optimistic a deal might be reached.
  • FED Meeting minutes, later tonight at 21:00 SAST. We expect volatility in the markets over this announcement.

Taking a closer look at the Daily chart of Wall Street we can see that the price action is now above our NFP target price with a beat on the Jobs number. The price action might find some resistance at 24089 which would be a first target price. If we see a positive outcome with the trade negotiations, then the price action might move higher still to a second target price of 24841.

Take note, if no trade agreement can be reached then a possible move lower is on the cards back down to 23442.

Source – MetaTrader5

 

 

Taking a closer look at the 4 Hour chart we can see a cup and handle reversal pattern and the price action pushed higher from the 23442 level. The price action still needs to move through the 50% Fibonacci retracement level to achieve our first target price of 24089.

Source – MetaTrader5

Image Source: Wolf of Wall Street

Remember that trading puts your capital at risk. Always trade cautiously and never above your means. 

Disclaimer: Any opinions, news, research, analyses, prices, or other information contained within this research is provided as general market commentary, and does not constitute investment advice. GT247.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The content contained within is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions.